Labor and Employment Agenda

8/6/2019 Labor and Employment Agenda

1/43

1

The Philippine Labor

& Employment

Agenda

2011-2016

Advancing Inclusive Job Rich Growth

through Decent Work

For Discussion Purposes Only


2/43

Table of Contents

Chapter 1 Deriving the Agenda: An Introduction4

Chapter 2 Declaration of Policy......7

Chapter 3 Outlining Solutions 17

3.1 Rights at Work..17

Outcome ..Background .Issues and Challenges..Objectives and Strategies

3.2 Employment.25


3.3 Social Protection..............34


3.4 Social Dialogue39


3.5 Sustaining Outcomes...........42

Background.Objectives and Strategies

Annexes The Philippine Jobs PactResults Evaluation and Monitoring Matrix (REMM)


3/43

4 |P a g e

4

Laborand Employment Agenda - DraftasofJune 2, 2011 2011-2016

1

THE LABOR AND EMPLOYMENT AGENDA 2011-20162

The Labor and Employment Agenda seeks the attainment of the over-all macroeconomic3

goals set forth in the Philippine Development Plan 2011-2016, particularly the goal of4

inclusive growth. Through this Agenda, labor and employment stakeholders recognize that5

inclusive growth will only occur by underscoring the need for decent work for all Filipino6

workers, thereby achieving the countrys Millennium Development Goal on eradicating7

extreme poverty and hunger by achieving full and productive employment and decent work8

for all, including women and young people.19

It is anchored on the Presidents social contract with the Filipino people and inspired by his10

vision of a transformed, just and righteous Philippines. It is based on the22-point labor and11

employment policy agenda that has the overarching goal of investing in our human resource12

to make them more competitive and employable while promoting industrial peace based on13

social justice.14

It recognizes that economic growth should be job-rich and the benefits of growth are spread15

more widely. It takes into account public-private partnerships and the strong link among16

government, the academe and industries in the development of human resources. It also17

recognizes that in light of labor market realities, measures to support the competitiveness of18

enterprises should be balanced with provision of adequate social safety nets to protect19

vulnerable workers. It considers that fair and speedy labor justice is indispensable to sound20industrial peace and favorable climate for investments. It gives value to social dialogue in21

the formulation of sound and responsive policies to attain inclusive growth. Most22

importantly, competence, integrity, transparency and accountability in labor governance23

forms part of the Agenda as an acknowledgement that these are requisites for its successful24

implementation and for sustaining outcomes.25

Using decent work as the agenda framework, reforms in the Agenda cover a comprehensive26

and integrated policy and program response in the areas of: employment facilitation,27

workers welfare and protection, and labor relations. The Agenda also provides for the labor28

law reforms that seek to modernize the Labor Code and re-align its provisions to the realities29

of the labor market in the 21st century globalized economy.30

31

1 Target 1b under MDG Goal 1 with indicators on growth rate of GDP per person employed (Labor Productivity); Employme nt-to-

population ratio; Proportion of employed people living below $1 (PPP) per day (Working poor); and Proportion of own -account andcontributing workers in total employment (vulnerable employment)

Chapter

1 Introductory Chapter


4/43

5|P a g e

5


PROCESSES32

The Agenda is a result of a series of inclusive social dialogue that started in July 2010 until33

March 2011 with workers, employers, youth, and civil society groups involved in local and34

overseas employment as well as with national government agencies whose mandates35

impinge on the attainment of the reform areas found in this Agenda. In these series of36

dialogues and consultations, the reforms areas received broad commitment and support for37

successful implementation from 2011 to 2016. The following dialogues and consultations all38

led to the shaping of the Agenda:39

y Discussions at the National Tripartite Industrial Peace Council (TIPC)40y Dialogues with workers and employers groups41y Dialogues with social partnership organizations42y Dialogues with industry associations and chambers of commerce and industry43y Dialogues with non-government organizations44y Dialogues with the diplomatic corps and international organizations45

46

These crucial discussions were complemented by a series of island-wide and sectoral47

consultations among workers, employers, civil society, youth and government48

representatives in the latter part of 2010 and more in-depth planning discussions in the first49

quarter of 2011 where issues and recommendations to address matters on human resource50

development, employment, social protection, labor relations, labor law reforms, and51

migration and development were thoroughly discussed and where agreements on the way52

forward were arrived at.53

To ensure that the Philippines commitment to the attainment of decent work remains on54

track, the process in shaping this Agenda also includes a tripartite assessment of the 3rd55

Cycle of the Philippine Decent Work Common Agenda toward identifying priorities that56

should be included in this Agenda as the 4

th

cycle of the Philippine Decent Work Agenda.57

In all these activities, tripartite participation was ensured not only in discussions but more58

importantly in the actual formulation of the reform package that shall become the essence59

of the Labor and Employment Agenda 2011-2016 as well as in the determination of tripartite60

commitments to the Philippine Jobs Pact which is the accompanying document of the61

Agenda.62

BASES FOR THE AGENDA63

The Agenda is based on the following documents:64

y Philippine Millenium Development Goals65y Philippine Development Plan 2011-201666y 22-Point Labor and Employment Agenda67y DOLE 100 Days Accomplishment Report on Reforms Programs68y DOLE Legislative Agenda69y DOLE Employment Diagnostic Analysis 201070y Results of island-wide and sectoral consultations leading to the National Summit on71

Labor and Employment72y Results of DOLE 2011 Corplanning Exercises73


5/43

6|P a g e

6


y Assessment Report on the 3rd Cycle of the Philippine Decent Work Common Agenda74(PDWCA)75

y ILO Country Scan for the Philippines7677STRUCTURE78

The Agenda has the following structure:79

Chapter 1: Introduction80

Chapter 2: Declaration of Policy81

Chapter 3: Outlining Solutions82

3.1 Rights at Work83

3.2 Employment Opportunities for All84

3.3 Social Protection85

3.4 Social Dialogue86

3.5 Sustaining Outcomes87Annexes:88

y Philippine Jobs Pact89y Labor and Employment Results Evaluation and Monitoring Matrix (REMM)90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112


6/43

7|P a g e

7


113

Inclusive Growth and the Medium-Term Strategy 2011-2016114

115

1. Inclusive growth is the avowed Medium-Term Philippine Development Plans116(MTPDP) imperative. It is defined to be sustained growth that massively creates117

jobs, draws the vast majority into the economic & social mainstream and118

continuously reduces mass poverty.1119

120

2. How inclusive growth as envisioned will be made manifest in the medium-term is121outlined in the MTPDP Five Strategic Pillars, viz.:122

y Macroeconomic Policy123y Infrastructure Development124y Strengthening the Financial Sector and Capital Mobilization125y Enhancing Peace & Security for Development126y Protecting the Integrity of the Environment & Natural Resources127

128

3. Essentially, the MTPDP Five Strategic Pillars outlines priorities and programs that are129designed to increase productive capacity in the economy with the strategic intent of130

creating jobs and reducing poverty. The Pillars, as conceived, particularly highlights131

the requirements of vulnerable groups in terms of resources, opportunities and132

protection to consequently allow these groups to participate fully in the development133

process.134135

4. Focusing on inclusiveness therefore from the labor & employment perspective136denotes inclusive growth to mean the following2 :137

y growth that creates jobs;138y growth that expands equal opportunities and access;139y growth that brings about pro-poor improvements in the non-income dimensions;140

and;141

y growth that promotes cooperation and innovation in labor and management142relations for mutual gains143

144

145

146

147

148

149

150

151

Chapter

2 Declaration of Policy


7/43

8|P a g e

8


Translating growth into employment opportunities152

153

5. That recent growth in the Philippines has failed to translate into equivalent rates of154absolute job creation is therefore of enormous concern to the MTPDP.155

156

Table 1. Gross Domestic Product and Employment157

Year

Employment Gross Domestic Product

In 000Growth Rate

(%)

In million P

(At constant prices)

Growth Rate

(%)

2005 32,313 2.2 1,211,452 5.0

2006 32,636 2.0 1,276,156 5.3

2007 33,560 2.8 1,366,625 7.1

2008 34,089 1.6 1,417,087 3.7

2009 35,061 2.9 1,432,115 1.1

2010p 36,035 2.8 1,537,152 7.3p Preliminary.158

Sources:National Statistics Office, Labor Force Survey; and National Statistical Coordination Board,159National Accounts of the Philippines.160

161

6. Moreover, that growth has failed to generate the types of jobs that make the largest162and most sustainable inroads to poverty reduction and socio-economic development163

namely, those that are productive and decent and upholds fundamental human164

rights and protections, compounds the issue.3165166

Table 2. Employment by Class of Worker167(In 000)168

Year TOTAL

Wage and

SalaryWorkers

Employers

Vulnerable Employment

Self-

Employed

UnpaidFamily

Workers

Total

2005 32,313 16,316 1,520 10,584 3,893 14,477

2006 32,636 16,673 1,425 10,525 4,012 14,537

2007 33,560 17,508 1,430 10,570 4,052 14,622

2008 34,089 17,846 1,426 10,654 4,161 14,815

2009 35,061 18,681 1,438 10,724 4,218 14,942

2010p 36,035 19,627 1,393 10,858 4,157 15,015

p Preliminary.169

Source:National Statistics Office, Labor Force Survey.170

171

Vulnerable employment referred to are normally found in the category of the self-172

employed and unpaid family workers, the nature of work described to be173

employment-led survival activities. These workers are those who create their own174

economic exchanges and employ themselves and their families. They are less likely175

to have formal work arrangements, access to benefits or social protection programs176

Comment [TVP1]: Pleasecheckthattablepositionsthroughoutthe documentaresimilarly

sized/aligned. I triedtofix it pero nag -iinarte.


8/43

9|P a g e

9


and are more at risk to economic cycles. They are too presumed to be largely177

impervious to macroeconomic parameters and policies.4178

179

However, the jobs in the wage and salary category are likewise not spared from the180

risks and vulnerabilities brought about by the seismic shifts in work and work181

arrangements that have rendered existing standards ensuring workers protection182

and representation inadequate.183

184

Of the total unemployed of 2.9 million in 2010, more than half are young people185

(aged 15-24 years old). Their unemployment rates have been consistently more than186

twice the national unemployment rates from 2005-2010. This evinces the lack of187

productive capacity in the economy to mine the tremendous energies and potential188

of its human capital particularly its youth population.189

190

Table 3. Youth Unemployment (2005-2010)191

YearYouth Unemployment

Rate (%)Unemployment Rate

(%)Total Unemployment

(In 000)

2005a 17.2 7.8 2,748

2006 17.8 8 2,829

2007 16.8 7.3 2,653

2008 17.4 7.4 2,716

2009 17.6 7.5 2,831

2010p 17.6 7.4 2,859p Preliminary.192

a AverageofApril, Julyand Octoberdataasdefinitionofunemploymentrevised in April193

2005.194


Further, vulnerabilities are clear and present in overseas jobs as well , jobs that197

swelled to unparalleled numbers, again evidence of the lack of employment198

opportunities in the domestic economy. While a boon to the economy given the199

enormity of the resultant remittance contributions (accounts for around 9% of GNP),200

it too is a bane given its attendant social costs and welfare issues.201

202

Table 4. OFW Deployment and Remittances203

Year OFW Deployment Remittances (In thousand USD)

2005 988,615 10,689,0052006 1,062,567 12,761,3082007 1,077,623 14,449,928

2008 1,236,013 16,426,8542009 1,422,586 17,348,052

2010 1,079,221 (Jan-Oct) 18,762,989Source: POEA. 2009 Overseas Employment Statistics and BSP204

205

Comment [TVP2]: They maybe working und

informal workarrangements, i.e., non-declaratio

the jobsortheemployees;casual jobsor jobsof

limitedshortduration; jobs withhoursofwork o

wagesbelow aspecifiedthreshold (e.g.for socia

securitycontributions);employmentby

unincorporatedenterprisesorby persons in

households; jobs wheretheemployees placeof

work isoutsidethe premisesoftheemployers

enterprise (e.g.outworkers withoutemploymen

contract);or jobsfor which labourregulationsar

notapplied, not enforced, ornotcomplied with

anyotherreason.

Source: Guidelines concerning a st atistical defini

of informal employment, The Seventeenth

International Conference of Labour Statisticians

(ICLS), 2003


9/43

10|P a g e

10


7. Pursuing the same growth path and given a 7% growth scenario for 2011-2016,206indicative results from employment projections runs resulted into numbers less than that207

of what is required to employ the vast multitude of the increasing unemployed. This208raises the issue of the magnitude of growth that is really required to ease vulnerabilities209

in the labor market. 5210

211

212

213

Table 5. Employment Projections- 7.0% Annual Economic Growth Scenario214

Employment Projections

2011 1,274,367

2012 1,200,399

2013 1,122,138

2014 1,150,291

2015 581,7092016 1,532,072

Total 6,860,975Source: DOLE (2010). The Philippine Employment Projections Model Project215

216

8. That growth translates to achieving the declared Millennium Development Goals217(MDGs) is also another major concern. While the governments mid-term report shows218

the country is on track to meet a number of 2015 targets, it at the same time highlights219

areas that are still lagging and thus require renewed efforts to meet their targets. These220

include universal primary education, maternal heath, and reproductive health services, all221

of which impact on the quality of human capital .6222

223

Table 6. Philippines MDG Rate of Progress at the National Level224

MDG Goals and Targets Probability of Attaining theTargets

Eradicate extreme poverty and hunger High

Achieve universal primary education Low

Improve maternal health Low

Increase access to reproductive health

services

Low

Reduce child mortality High

CombatHIV and AIDS, Malaria and other

Diseases

High

Ensure environmental sustainability High

225

9.

Further, trending of listed indicators on MDG Goal 1 on eradicating extreme poverty226

and hunger that targets the achievement of full and productive employment and decent227

work for all reveal the following:228

229

Comment [TVP3]: Thereare 8 goals, 4th

liste

atarget.Pls.see MDGWatchatnscb.gov.phast

probabilitiesareattachedtothe indicators unde

eachgoal/target.


10/43

11|P a g e

11


y That labor productivitys fluctuating growth rates put in question the capacity of230the countrys economic environment to create and sustain decent and231

employment opportunities with fair equitable remuneration;232y That stagnancy in the employment-to-population ratios further raises the issue of233

the economys ability to provide employment to its working population or to234

provide jobs for those who want to work;235

y That the increasing proportion of working poor in total employment points to the236growing lack of decent work; and237

y That the increases in the absolute numbers of self-employed and unpaid family238workers indicate increasing vulnerabilities.239

240

TABLE 7: MDG Goal 1:Eradicating extreme poverty and hunger241

Target 1.B. Achieve full and productive employment and decent work for all ,242

including women and young people243

Indicator Description Trend

1.4. Growth rate of GDPper person employed(Labor productivity)

Annual change in grossdomestic product (GDP)per person employed

y Fluctuatingy Steep decrease from 2007

to 2009

1.5. Employment-to-population ratio

Proportion of countrysworking age populationthat is employed

y Relatively constanto Lower for womeno Decreasing for youth

1.6. Proportion ofemployed peopleliving below thepoverty line(working poor)

Proportion of workingpoor in total employment

y Increasing (from 2003 to2006)

1.7. Proportion of own-account andcontributing familyworkers in totalemployment

Sum of self-employedpersons and unpaidfamily workers as apercentage of totalemployment

y Increasing in absolutenumber

y Decreasing as aproportion of the totalemployed

Source: Based on figures from the Bureau of Labor and Employment Statistics, 2010, The Ph ilippine244

Employment Situation and MDG Employment Indicators.245

246

10.In addition, further to the MDG goals of equality at work characterized by fair pay,247equal opportunities and equal access for both women and men in the labor market,248

the outcomes are still found wanting.249

Table 8. Labor Force Participation Rate, by Sex, 2006-2010250(In %)251

Year Men Women Men-Women

Participation Gap2006 79.3 49.3 30.02007 78.8 49.3 29.52008 78.8 48.6 30.22009 78.6 49.4 29.22010p 78.5 49.7 28.8


11/43

12|P a g e

12


p Preliminary.252


254

While womens labor force participation rates have been slightly but constantly255increasing over the recent years, their level of participation have lagged behind that256of men. Other issues related to discrimination, stereotyping, unequal pay, violence257and vulnerabilities in the workplace have barred women from acting as potent forces258and partners in development.259

11.All these factors cast serious doubts over the quality of recent growth in the country260 that the present growth-led strategy (where jobs are generated by demand in the261

products/services markets) is neither adequate in itself for good jobs to be created262

nor an adequate predictor of the quality of employment outcomes.263

264

12.With vulnerability therefore as a major social or labor concern ,a more integrated265approach to the inclusive growth challenge is needed. In this regard, a balancing266initiative to the growth-led strategy is posited the employment-led strategy.267

268

13.The employment led strategy deems human resources and the labor force to be not269just primarily beneficiaries of growth but also creators of growth. Investments in the270

qualitative development of human resources make up the foundation and essence of271

inclusive job-rich growth.272

273

Qualitative attributes include education, skills, health and cognitive abilities among274

others. They set the parameters for a workers ability to access productive275

employment. They also make possible increases in the scope for technological276

advancement, increased labor productivity and returns to labor at the aggregate277

level.7278

279

The 22-Point Labor & Employment Agenda280

14.It is along this quest for new solutions that the 22 point agenda, the platform and281policy pronouncements on labor and employment of the new administration was282

framed.283

284

The Goal which asserts that the State will invest in our countrys top resource, our285

human resource, to make us more competitive and employable while promoting286

industrial peace based on social justice is essentially an articulation of support for a287

strategy that is employment-led.8288

289

15.The idea is to link closely employment led-labor markets to the growth-led model,290not necessarily to change the status of employment or to change the sector of291

activity of these vulnerable sectors but to create the virtuous circle of shared value 292

that by improving value in one area gives rise to opportunities in the others.293

Ultimately, it is by better connecting economic goals with societal goals that will294

make inclusive growth possible.9295

Comment [TVP4]: Pls. mention mdg indicato3.2. The ideal 50% ratio isapplicabletothis

indicatornotonthe participationgap wherethe

ideal is 0, meaningequal participationratesfor

womenand men.


12/43

13|P a g e

13


296

16.Further, the idea is to link markets and non-markets that growth is defined not297only by interactions governed by markets and contracts but also by social, political298and legal arrangements outside of, but in conjunction with markets and contracts.299

300

17.The principle is that non-market solutions to economic problems should run basically301parallel to market solutions. While markets determine the significance of non-market302

issues, the non-markets shape opportunities in the marketplace.303

304

18.Non-market issues high on P.Noys 22-point labor and employment agenda include305governance, human rights, social protection, tripartite cooperation, labor arbitration306

and adjudication systems, safe migration, skills upgrading, health and safety and307

social insurance.308

Labor & Employment in the MTPDP Five Strategic Pillars10309

310

19.It behooves the Department of Labor & Employment, as a primary labor market311governance institution, to therefore be in a perpetual collaboration mode as labor312

and employment outcomes are shaped by drivers outside its organizational realm313

and its future deeply intertwined with the complex policy web.314

315

20.Macroeconomic policies have a direct impact on income & employment as the316maneuverings of monetary, fiscal, exchange rate, trade and price policies predicts317

how much of the economys productive capacity will be used. High unemployment318

means that there is unused productive capacity in the economy, which implies319

wastage and lost opportunities.320

321

21.Infrastructure development is an important driver of economic growth.322Characteristically labor intensive, it is a key employment generator.323

324

22.Strengthening the financial sector and capital mobilization allows money from325lenders to find its way to borrowers who use it for investments such as starting a326

business and increasing production capacity. A healthy financial sector therefore can327

stimulate the employment of labor as firms may hire more personnel when they328

expand.329

330

23.Good governance provides an environment that attracts business and commercial331activities. Better governance and stronger rule of law permits a stricter332

implementation of existing policies and laws, less bureaucracy and red tape and333

faster processing of business requirements. In effect, the increase in number of334

businesses can generate additional employment.335

336

24.Enhancing peace & security for development is a broad concept that includes337improving a persons health, education, income and quality of living. It contributes338

to the protection of labor and the promotion of productivity. Likewise, it promotes a339


13/43

14 |P a g e

14


physical environment conducive to investments and higher level business and340

commercial activities.341

342

25.Protecting the integrity of the environment & natural resources creates value,343promote innovation, build competitive advantage and improve lives. It also344

addresses the social justice issue head-on as the only security the poor have is345

derived from having a well balanced and preserved environment that primarily is346

where their livelihoods/incomes are sourced.347

348

Advancing Inclusive Job-Rich Growth thru Decent & Productive Work349

350

26.In this regard, the major goal in the medium-term is to advance inclusive job-rich351growth thru decent and productive work. Achieving this goal can be seen as the352

combined impact of two categories of factors:353

y increased opportunities for & returns to human capital; and354y enhanced human capital base355

356

27.On creating opportunities for and returns to human capital, a vital element is the357need to conceive of policies in more integrated ways. This should give space to358

combined economic growth, employment and social protection policies. Such polices359

support both labor demand and labor supply to enable more men & women to enter360

into productive employment.361

Effective Implementation of this strategic priority depends on applying these policy362

principles:363

To increase employment levels:364

y The package of macroeconomic policies is conducive to growth and365competitiveness366

y Attendant to the package are supporting sector policies conducive to367employment growth : agriculture, infrastructure, education, health368

o As employment in agriculture comprise one third of total and where the369bulk of vulnerable groups are found, sector policies with regard to the370transformation of agriculture will receive high priority371

o Given the total infrastructure investment scenario using the PPP strategy372and the potential of the sector to employ rural and semi-skilled workers373will be targeted to facilitate growth374

o Education sector policies including well-targeted vocational and375entrepreneurial education will be given priority to improve the base376knowledge and skills of the workforce377

o Health sector polices will receive priority to ensure the basic level of378health of the workforce and improve productivity379

y The dimensions of fiscal policy that favor most job creation in the real economy380and maintain social protection for the most vulnerable are given priority381

y The financial sector meets the need for investment, innovation, trade &382consumption in the real economy and adopts financial policies and regulations383

which encourage resource flows and allocations including development384


14/43

15|P a g e

15


cooperation towards longer-term productive investment by sustainable385

enterprises386

y Market oriented mechanisms allow for higher savings to be channeled into387higher capital formation (especially for remittances)388

389

To provide equal access to labor markets & employment opportunities390

y Urban bias in program design is reduced to favor more of rural, agri-based391initiatives392

y Gender issues in work and in workplaces adequately addressed393y Access to capital, to common resources, technology for the vulnerable groups are394

greatly improved395

y Labor market intermediation aided by technology to increase geographic,396occupational and social mobility is promoted397

y Mechanisms to facilitate transit of small-scale entrepreneurs from the informal to398the formal sectors can be accessed

399

y Social protection as it positively impacts on equity, redistribution and social400justice contributes to sustainable growth in the long-term401

y Reintegration programs for OFWs to facilitate re-entry to the labor market is402prioritized403

y Mutual recognition agreements are delved into to provide equal access to404professionals who opt to work abroad405

y Bilateral agreements with OFW destination countries opened to improve market406access and protection for OFWs407

408

To improve quality of employment409

y Flexible and moderate wages policy linked to productivity improvement are in410place411

y Given differing work and representation requisites , human resource systems as412envisioned are present for both domestic and overseas workers413

y Conditions conducive to growth and development of the private sector (laws,414land arrangements, labor market information, banking development) are415promoted416

y Cost of doing business greatly reduced417y Growth not concentrated in the winner sectors only but also in emergent418

sectors419

420

28. On enhancing the level of human capital, it is imperative that in the context of421changing technologies and global competition, a mutual gains strategy that is422

human resource or market enhancing one that encourages firms and employees to423

focus on the joint outcomes of improving competitiveness of the enterprise and the424

economy through a high productivity and high skills labor force is pursued425


15/43

16|P a g e

16


Effective Implementation of this strategic priority depends on applying these policy426

principles:427

To promote cooperation and innovation in labor and management relations for428

mutual gains 11:429

y The influence of human resource considerations and employee interests in the430long term strategic decisions and governance processes of the firm/state are431

institutionalized/prioritized432

y The diffusion of human resource policies within individual firms to the larger433business environment is supported to encourage wide adoption as it may434

produce benefits for the macroeconomy and society435

y Incentives for coupled capital and human resources investments to encourage436enterprises to invest in both capital and human resources and put in place the437

governance and human resources required for these investments to reach their438full potential are available.439

y Industry human resource advisory councils with a broad and open ended440mandate to allow for appropriateness in response depending on context are set441

up to foster continuous improvements in practices and outcomes. For instance,442

the council could tackle current regulatory and management systems in the443

industry deemed effective in managing the risks associated with the use of444

contract labor445

y Risk- rewards sharing & governance are observed as new participatory and446representative structures and processes that upgrades the voice of employees447

and human resource considerations in corporate/firm governance448

y Updating & transforming worker rights to representation from a protracted &449adversarial course to human resource based - focused on the development of450

skills and abilities to promote, develop, utilize and mobilize human capital as451

embodied in the labor force of the future.452

453

The strong primacy of economic growth as the foundation of all efforts to promote inclusive454

growth is recognized. But because creation of jobs and poverty reduction are the clear and455

compelling reasons that will serve the objectives of inclusive growth, initiatives therefore to456

promote human capacities which this Philippine Labor and Employment Agenda embodies457

are to be pursued with equal & fierce fervor.458

Sources:459460

1. Medium-Term Philippine Development Plan 2011-20164612. ADB Sustainable Development Working Paper Series No. 12, June 20104623. Philippines Country Scan, ILO,20104634. The non-mystery of employment led growth, Duncan Campbell, ILO464


16/43

17|P a g e

17


5. National Statistics Office, Labor Force Survey4656. National Statistical Coordination Board, National Accounts of the Philippines4667. Employment Projections, 2011-2016, DOLE4678. Bureau of Labor and Employment Statistics, 2010, The Philippine Employment468

Situation and MDG Employment Indicators.469

9. Philippine overseas Employment Adminisration47010. Bangko Sentral ng Pilipinas47111. Employment Diagnostic Analysis, Concepts & Methods, ILO,201047212. The 22 Point Agenda47313. Creating Shared Value, Harvard Business Review, Jan-Feb 201147414. Labor and Employment in the Five Pillars, IDEA, Jan 201147515. Principles for A Post New Deal Employment Policy, Kochan,T.A., May 1992476

477

478

479

480

481

482

483

484

485

486

487

PILLAR I. RIGHTS AT WORK488

OUTCOME: Strengthened observance of the constitutionally protected rights of workers489

BACKGROUND490491

Achieving decent work for Filipino workers calls for the promotion and protection of492

fundamental rights at work that cover the following:493

y The rights to form or join trade unions and workers organizations of ones choosing494and the right to free collective bargaining with management495

y Freedom from forced labor, involuntary servitude, slavery or slave-like conditions at496work497

y Freedom from discrimination at work, including getting equal pay for work of the498same value499

y Absence of child labor500501

Chapter

3

Outlining Solutions


17/43

18|P a g e

18


The eight (8) ILO Conventions embodying these fundamental rights have been ratified by502

the Philippines. These are: C87 on Freedom of Association and Protection of the Right to503

Organize (1948); C29 on Forced Labour (1930 ); C105 on Abolition of Forced Labour504(1957); C138 on Minimum Age for Employment (1973); C182 on Worst Forms of Child505

Labour (1999); C100 on Equal Remuneration (1951); and C111 on Discrimination506

(Employment and Occupation) (1958). Toward ensuring the observance of these507

Conventions, policies and programmes seeking to promote and protect fundamental rights508

at work have been identified as priorities in the countrys Decent Work Common Agenda 509

3rd Cycle2 and are crucial in the achievement of the over-arching goal of inclusive job-rich510

growth.511

ISSUES AND CHALLENGES512513

Toward ensuring that the rights of workers are observed in the Philippines, the following514

issues and challenges must be taken into account in the Agenda:515

y Inconsistencies between national laws and ratified conventions. Much effort is516still required to make national laws consistent with conventions ratified by the Philippines517and to strengthen its application. Meanwhile, there are conventions to which the518Philippines has committed that may no longer be applicable in the present work519environment. Thus, there is a need to amend labor laws and to prioritize legislation that520would operationalize, in a sound and realistic way, the principles of social dialogue,521productivity and competitiveness, and business self-regulation while at the same time522prescribing policy directions on emerging employment arrangements.523

524

y Limitations in the enjoyment of fundamental rights, particularly in respect of525freedom of association and collective bargaining. Freedom of association and526collective bargaining are linked to the guarantees of basic human rights and civil527liberties. These rights cannot be realized if there is rampant violation of human rights.528

The Philippines faces this challenge in view of reports to the ILO on various cases of529detention, arrest, physical threats, assaults or disappearances of leaders and workers530and employers organizations for activities in connection with the exercise of their right531to organize. This concern reinforces the climate of violence and insecurity which further532threatens and limits the exercise of trade union rights by hampering the development of533genuine, free and independent workers and employers organizations.3534

535

y Lack of protection of workers through labor standards. With the changes in work536arrangements in the country, it is observed that existing standards ensuring workers537protection have become inadequate. This gap in promoting and protecting the rights of538workers have manifested in: low wages, weak enforcement of minimum standards,539weakening trade unionism and collective bargaining and limited representation of540workers in policy-making.4 These are challenges that impinge on the Philippines efforts541in promoting and ensuring workers rights and are central to meeting the objectives of542decent work in the country.543

544

2DOLE-NTAC (2011)Assessmentofthe3rd CycleofthePhilippine Decent Work Common Agenda

3DOLE (2009).Proceedingsofthe National Tripartite ConferenceonPrinciplesofFreedom ofAssociation

4ILO (2009).Technical Memorandum:Philippines Labour Inspection Audit.


18/43

19|P a g e

19


y Increasing workers insecurity due to flexible arrangements. Competition in545global markets has pushed businesses to resort to outsourcing as a strategy to decrease546

labor cost and increase flexibility. This strategy, however, raises labor issues that are547 seen throughout Asia such as the increased insecurity of jobs, lower wages, and the548weakening of the influence of workers and unions. Most commonly, these include the549duration, nature and termination of employment contracts and the conditions for the use550of temporary or outsourced labor. The Philippines, as with other countries in the Asian551region, faces the challenge of balancing the legitimate needs of employers for flexibility552with the equally legitimate demands by workers for stability and protection.553

554

y Increasing vulnerability among migrant workers. Migration among Filipinos today555is largely contract migration or migration for temporary work and is progressively on the556rise and getting diverse. Whereas before, workers were involved mainly in infrastructure;557in more recent times, they have moved into service occupations. Previously, migrants558were mostly men; now women have become more significant in the migration flows.559This trend calls for responses from countries of origin such as the Philippines to ensure560

the protection of overseas workers from exploitative practices not only during561employment in the destination country but also during the recruitment and pre-562deployment phase both in the country of origin and destination as well as upon return563and reintegration.564

565

y Vulnerability among domestic workers. Domestic workers include both OFWs566working abroad as domestic workers and Filipino domestic workers working within the567Philippines. Their work situation which are usually private households, either overseas568or locally, exposes them to vulnerabilities particularly abuse and exploitation. While a569package of reforms was introduced to establish higher labor standards for migrant570domestic workers resulting to reduction in their deployment, an upsurge in deployment571has lately been observed. On the other hand, reforms in the protective mechanisms for572domestic workers in the local economy are also called for.573

574

OBJECTIVES AND STRATEGIES575576Objective: Improving quality of employment577

Strategies:578

y Align labor policies with international treaties and ILO conventions in a sound579and realistic manner5 and toward responding to labor market realities6.580Through consultations and with tripartite support, reforms will focus on the581following priority legislative proposals7:582

583

1. Amendment toward modernizing the Labor Code to make the country more584competitive as a destination for investments particularly in terms of: 1) reasonably585

5Asdiscussed in Chapter3 Competitive Industryand ServicesofthePhilippine DevelopmentPlan 2011 -2016, page 15 (25

February 2011 Draft)6

Agenda 7 of22-Point Laborand Employment Agenda7

DOLE Priority LegislativeProposals


19/43

20|P a g e

20


terminating employees; 2) allowing subcontracting to meet the needs of a global586market.8587

5882. Repeal of Article 130 of the Labor Code on nightwork prohibition for women589

employees in industrial and commercial undertakings toward allowing allow women590employees estimated to be close to 1 million who are working in the business591process outsourcing (BPO) and manufacturing sector to work at night, consistent592with rights to equal employment opportunities and the right against employment593discrimination.9594

595

3. Passage of a Holiday Rationalization Act which (1) restricts the total number of596national non-working holidays to a regionally competitive number; (2) allows firms597servicing foreign clients on Philippine national and local non-working holidays to give598employees substitute days-off; (3) exempts firms engaged in the export of goods599and services from local non-working holidays.10600

601

4. Amendment to Sections 3,6, and 7 of the Public Employment Service Office (PESO)602Act of 1999 toward the establishment, operation and maintenance of the PESOs in603capital towns, key cities and municipalities by local government units; the604establishment of job placement offices instead of PESOs; and a provision on the605services of PESOs.606

607

5. Enterprise-Based Training (EBT) Act toward strengthening the enterprise-based608training by consolidating apprenticeship and learnership (Art. 57 to 72 and 73 to 77609of the Labor Code), dual training (RA No. 7686), on-the-job training and all other610forms of industry-based training arrangements into one rationalized system.611

612

6. Institutionalization of the Ladderized Education Program toward strengthening the613same by developing and implementing a unified national qualifications framework614

that established equivalency pathways for the ladderized system and which allows615

transition and progression between techvoc education and training and higher616education.617

618

7. Integration and harmonization of the existing regulatory laws under the jurisdiction619of the Professional Regulations Commission (PRC) through codification of all620regulatory laws of the various professions and toward promoting consistent621enforcement of professional standards.622

623

8. Amendments to the Productivity Incentives Act of 1990 (RA 6971) toward liberalizing624the law to make it more attractive and palatable to its intended sectors by625eliminating existing conditions that unduly limit or regulate the process of626productivity improvement.627

8Joint Foreign ChambersofthePhilippines (2010). ArangkadaPhilipines 2010: A BusinessPerspective, Part3. BPO

Headline Recommendation, page 86.9Joint Foreign ChambersofthePhilippines (2010). ArangkadaPhilipines 2010: A BusinessPerspective, Part3. BPO

Recommendations page 88.10

Joint Foreign ChambersofthePhilippines (2010). ArangkadaPhilipines 2010: A BusinessPerspective, Part3. BPORecommendations page 87 andPart3Manufacturingand Logistics Recommendations, page 196.


20/43

21|P a g e

21


628

yProvide an enabling environment for the observance of the constitutionally629 protected rights of all workers as well as their right to freedom of association630and collective bargaining and the right to participate in the policy-making631process11, particularly avenues for dialogue and cooperation based on the632spirit of mutual benefits12 . Through consultations and with tripartite support,633reforms will focus on the following13:634

635

1. Amendment to Articles 234, 235, 236, 237 and 270 of the Labor Code toward636strengthening workers right to self-organization and toward synchronizing particular637provisions of the Labor Code with ILO Convention No. 87 (Freedom of Association638and Protection of the Right to Organize, ratified on December 29, 1953), as639committed by the Philippines relative to the findings of the ILO High Level Mission to640the Philippines in 2009. Proposed legislation on this matter seeks to further liberalize641the exercise of trade union rights by removing the 20% minimum membership642requirement for registration of independent unions and reducing the registration643

requirement for federation, which was previously 10, to just 5 duly recognized644bargaining agent-local chapters. It also seeks to repeal the requirement of prior645authorization for receipt of foreign assistance.646

647

2. Amendment to Arts. 263, 264 and 272 of the Labor Code, as amended, on the power648of the Secretary of Labor to assume jurisdiction over labor disputes imbued with649national interest toward limiting the automatic issuance of assumption of jurisdiction650to two situations: (1) in the ILO concept of essential services or industry651determined through tripartite consultation as providing essential services which, if652interrupted, would endanger the life, personal safety or health of the whole or part653of the population; (2) in non-essential services, upon request from both parties654involved in the labor dispute after mandatory conciliation. Amendment shall also655pursue retention of the residual power of the President to determine industries that656

are providing essential services and from intervening and assuming jurisdiction657 during acute national emergency where all normal functioning of the society has658ceased and for the removal of criminal sanction for mere participation in an illegal659strike on ground of non-compliance with the administrative requirements.660

661

3. Amendment of Article 275 of the Labor Code toward the institutionalization of a662framework for tripartism and social dialogue by defining the objectives, functions,663composition of the National Tripartite Industrial Peace Council and mandating the664creation of TIPC counterparts at the regional and local levels as well as the665establishment of industry tripartite councils (ITC) for purposes of promoting666industrial peace and developing voluntary codes of good practices, with a view to667benchmarking compliance with labor laws and regulations on an industry-wide basis.668

669

4. Amendment of Article 228 institutionalizing the 30-day mandatory conciliation period670 of all labor and employment disputes consistent with the Single Entry Approach67111

Agenda3of22-Point Laborand Employment Agenda12

Asdiscussed in Chapter3 Competitive Industryand ServicesofthePhilippine DevelopmentPlan 2011-2016, page 16 (25

February 2011 Draft)13

DOLE Priority LegislativeProposals


21/43

22|P a g e

22


(SENA) under DOLE Department Order No. 107-10 and toward complementing the672existing labor dispute settlement mechanism by providing speedy, impartial,673

inexpensive, and accessible settlement services for unresolved issues/complaints674 arising from employer-employee relations.675676

5. Amendment of Article 129 and 217 of the Labor Code toward simplifying money677claims by removing the jurisdictional cap providing that all claims without a claim for678reinstatement shall be cognizable by the Regional Office and only those with claim679for reinstatement shall be recognizable by the NLRC.680

681

6. Amendment of Amending Arts. 141-143, 148 and 151 of the Labor Code, as682amended (Kasambahay Bill) toward improving the minimum working conditions that683will ensure the protection of an estimated 2.5 million domestic workers; mandating684that employment contracts shall be written in a language or dialect understandable685by both the worker and the employer; providing for higher minimum wages, a686

minimum age requirement of 18 years old and mandatory coverage of SSS and687Philhealth, among others.688

689

y Pursue the ratification of ILO Conventions that promote the rights of workers,690particularly14:691

692

1. Seafarers Identity Documents Convention (Revised), 2003 (No. 185) which693contributes to safer shipping and makes life easier for seafarers through positive694identification of bona-fide seafarers; provides for shore leave enabling seafarers to695go ashore in foreign ports after perhaps weeks or even months on board, and696facilities for joining their ship or for transit across a country for professional reasons;697and radically enhances the security features and the uniformity of the SID that698countries are required to issue to their seafarers, and lays down minimum699requirements with respect to countries processes and procedures for the issuance of700SIDs.701

702

2. Consolidated Maritime Labour Convention, 2006 (No. 186) which provides703comprehensive rights and protection at work for around 250,000 Philippine704seafarers, representing 25% of the worlds seafaring population; consolidates and705updates more than 65 international labor standards related to seafarers adopted706over the last 80 years; and sets out seafarers rights to decent conditions of work on707a wide range of subjects, and aims to be globally applicable, easily understandable,708readily updatable, and uniformly enforced.709

710

3. ILO Convention 187 or the Promotional Framework for Occupational Safety and711Health (OSH) Convention15 which endorses the establishment of a national policy,712national system and a national program on OSH while fostering decisive713

14DOLE Priority LegislativeProposals

15Laborand EmploymentPolicy ReformsandProgram Imple mentationforthe First 100 Days, 30 June - 08 October 2010


22/43

23|P a g e

23


commitments with tripartite partners for the improvement of conditions and714environment that will ensure the safety and health of Filipino workers in about715

800,000 establishments nationwide.716

717

y Promote better observance of international labor standards toward protection718of workers, through16:719

720

1. Intensified labor inspection program through the Labor Enforcement Action Program,721or LEAP which covers not only payment of minimum wage, overtime pay, night shift722differential pay, service incentive pay, holiday pay but other labor standards like723payment of SSS and Philhealth premiums, incidence of child labor and labor-only724contracting arrangements, and issuance of alien employment permit.17725

726

2. Compliance Certification System/Tripartite Assessment which promotes pro-active727involvement of companies in the implementation of tripartite certification of labor728standards compliance under the Labor Standards Enforcement Framework.18729

730

3. Designation of labor laws-compliant zones toward the promotion of the practice self-731policing among firms as part of compliance with labor standards laws.732

733

4. Promotion of labor law compliance among business and industry groups by jointly734developing a Q & A on all labor laws including components on culture and values to735be translated into various languages and dialects and to be used during seminars for736member companies including small and medium enterprises.737

738

5. Establishment of a two-tiered wage system that seeks to correct the exclusion of739millions of workers in more than 700,000 small enterprises from the protection of740minimum wage subsequently contradicting and violating the intent of RA 6727 or the741Wage Rationalization Act. The system will address unintended outcomes such as742inflation, unemployment, informality, weak collective bargaining, distortions in pay743systems, widespread atypical employment arrangements, involuntary non-744compliance, and reduced incentive to adopt pay-for-performance or productivity745schemes.19746

747

y Guarantee the rights and protection of workers in mutually agreed upon work748arrangements20 while also balancing the legitimate needs21 of employers for749flexibility by22:750

16Laborand EmploymentPolicy ReformsandProgram Implementationforthe First 100 Days, 30 June - 08 October 2010

17ILO (2009).Technical Memorandum:Philippines Labour Inspection Audit.

18 Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 4. Labor

Recommendations, page313.19

Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 3.Manufacturingand Logistics Recommendations, page 194 and 196.20

Asdiscussed in Chapters 1 and 2 ofthePhilippine DevelopmentPlan 2011-2016, pages 10 and 19 (25 February 2011

Draft)21

Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 4. LaborHeadline Recommendations, page313.


23/43

24 |P a g e

24


751

1. Pursue amendments to the Labor Code toward addressing contracting and752subcontracting issues particularly the Security of Tenure Bill (SB 858, SB 1060, HB753 303, HB 1451, HB 692) and to the rules implementing Art. 106 to 109 toward754imposing stricter penalties on labor-only contracting; defining what is usually755necessary and desirable in the usual trade and business of the employer to756determine who is a regular employee; allowing subcontracting that is done in good757faith and due to the exigencies of business and to distinguish between758subcontracting and outsourcing practices759

760

2. Amendment of Article 156-165 of the Labor toward defining definite and indefinite761period of employment; simplifying the legitimate grounds for termination of762employment and toward ensuring that workers are provided with the same or similar763non-wage benefits as regular contracts, and same rights of association and764bargaining and determining the limits on the duration of the contract765

766

3. Review the Dual Training Act, the Apprenticeship and LearnershipProgramme toward767preventing circumvention of the right to security of tenure of workers768

769

4. Review current outsourcing strategies among industries toward balancing protection770of workers rights and ensuring business competitiveness23 and the determining the771application of relevant provisions of the Labor Code and its implementing rules to772company decisions to outsource773

774

5. Support initiatives toward establishing alternative employment arrangements such as775the proposed repeal of the 8-hour law and adoption of the 48-hour workweek to776afford flexibility in hiring workers for industries or firms where work hours vary based777on demand for products or services (overtime pay starts after the 48 hours subject778to OSH guidelines)779

780

6. Study the possibility of setting-up an unemployment insurance scheme as the781workers income floor in case they lose their job and which allows time to find a new782job while unemployed783

784

y Ensure protection of overseas Filipino workers, including those in vulnerable785occupations24786

787

1. Expand protection measures for migrant workers through the full implementation of788RA 10022789

2. Decrease deployment of low-skilled workers in work prone to abuse and exploitation7903. Advocate for the review of bilateral and multilateral agreements toward ensuring that791

OFW destination countries have protective measures for migrant workers792

22Cited in ILO Country Scan and issue andrecommendations raised inconsultations leading to the National Summit on

Laborand Employment23

Agenda 4 of22-Point Laborand Employment Agenda24

Agenda 9 of22-Point Laborand Employment Agenda


24/43

25|P a g e

25


4. Conduct intensive information campaigns on the protective measures set forth in RA7931002794

5. Generate international support for the DomWork Convention, particularly among795 labor-receiving countries7966. Generate multi-stakeholder support for the passage of the instrument to implement797

the ASEAN Declaration on the Promotion and Protection of Rights of Migrant Workers798and their Families799

PILLAR II. EMPLOYMENT800

OUTCOME: Increased employment levels and increased access to employment801opportunities802

803

ISSUES AND CHALLENGES804

1. Low levels of employment805y Need for rapid and sustained economic growth to spur massive employment806

generation. Quality economic growth means that rapid output increases are807translated to employmentcreation. Economic growth in the past decade (1998-2009),808however, has not translated to equivalent improvement in employment levels.809Employment growth tended to be slower than economic growth. On the other hand,810unemployment rates showed little improvement despite periods of marked economic811growth. Low economic growth is attributed to lagging capital accumulation812(investments) and slow technology progress. The country is also prone to economic813shocks, natural disasters and extreme weather disturbances that affect the agriculture814sector, which is biggest employer in the country next to the services sector. Strategies815for economic growth must ensure that growth will not only be substantial and816sustained, but that it will also translate to an employment growth considerable enough817to significantly reduce unemployment. (MTPDP Chapter 1. In pursuit of economic818growth, pp. 1,7; Chapter 2: Macroeconomic Policy, p 2; BLES, 2010,819Employment and Economic Milestones 1998-2009)820

y Brain drain. The inadequacy of employment opportunities in the country is a821contributory factor in driving the outmigration of professionals and skilled workers in822the country, and in discouraging their return. Skilled migration is not inherently823detrimental, as long as their optimal economic gains are ensured and social costs,824including brain drain, is minimized. The challenge is how to translate the gains of825skilled migration in productive investments in the country by transforming migrant826workers into entrepreneurs and investors and by harnessing their skills for knowledge827transfers to spur productive activities in the country. (MTPDP Chapter 1. In pursuit828of economic growth, p. 1; Chapter 2: Macroeconomic Policy, p. 8)829

y Low level of investments. The countrys poor investments record constrains830employment generation. From 2004 to 2010, investments in the country dropped. The831countrys investment record is also the weakest in ASEAN-6 (Brunei, Malaysia,832Indonesia, Singapore, Thailand, Philippines). Inadequate infrastructure and a833

resulting poor logistics have been identified as a cause of poor investments record.83

4 Weak investments in power generation are also a problem, resulting in unreliable or835short supply of energy and causing disruptions in production and other economic836activities. (MTPDP Chapter 1. In pursuit of economic growth, p. 4; Chapter 3:837Competitive Industry and Services Sector, p. 3)838


25/43

26|P a g e

26


y Low productivity. The MSME sector is the largest sector in the country, accounting839for 99.6 of the total establishments and contributing 63.2% of the total employment in840

2009. MSMEs are however associated with low productivity and poor business841 conditions. Low productivity in turn constrains further job creation. Low productivity842of MSMEs can be attributed to lack of access to new technology, weak technological843capabilities, and failure to engage in innovation and research and development844activities. (MTPDP Chapter 3: Competitive Industry and Services Sector, p.84514)846

y A deteriorating environment that threatens human and physical capacity for847productive undertakings. The environment is deteriorating. Urban centers are848polluted and wastes are improperly managed. Continued deforestation is exacerbating849loss of watershed, which affects water supply. Land and water resources are fast850depleting. Consequently industries, which inevitably rely on natural resources for851inputs, are threatened. Poor population is also at risk because they mostly depend on852natural resources for their sources of livelihood. (MTPDPChapter 9: Conservation,853Protection and Rehabilitation of the Environment and Natural Resources854

TowardsSustainable Development,p. 34-35)855

2. Lack ofaccessto employmentopportunities856

y Structural employment. Despite periods of marked improvements in the economy857(5.0% in 2005 to 7.3% in 2010 at an annual average of 4.9%), unemployment barely858improved over the years, from 7.8% in 2005 to 7.4% in 2010. This means that859unemployment in the country is structural, which means that joblessness is not caused860by an overall lack of jobs, but because of lack of access to remunerated work, because861of the inability of workers to cope with changes in the economy, including changes in862technology and production and skill requirements. The phenomenons of high level of863unemployed youth and educated unemployed indicate lack of access to employment864opportunities in part icular because of mismatch of available skills and required skills.865

y High youth unemployment. Globally, one out of four in the working age population866is between 15 and 24 years old. About half of them are unemployed. In the867Philippines, the ratio is one out of four. In 2009, of the total 2.8 million unemployed,868more than half were young workers. In the same year, among the unemployed youth,869only a little more than half looked for work. This might be explained by the870requirement of schooling. However another half of the total were unemployed not871because of schooling but because of lack of employment opportunities or slow entry or872reentry to the labor market. These youth were either discouraged due to perceived873lack of employment opportunities (believed no work was available), were awaiting874results of previous job applications or were waiting for rehire or job recall.875

y Educated unemployed. The levels of educated unemployed are also high. In 2005876to 2010, an average of 39.8% of the unemployed or 1.1 million reached college. The877unemployment of the educated means loss of opportunities for productive work. 878

y Job skills mismatch. The high levels of unemployed youth and unemployed879educated can be attributed to mismatches between the skills supply and skills880demand, i.e., that the academic preparation of workers is either inadequate or881incongruent with that required by the labor market. It also means limited job882opportunities in the formal economy, which is a preferred employment destination of883those with higher levels of education and training. Based on a survey of the Bureau of884Labor and Employment Statistics covering a period of January 2007 and January 2008,885


26/43

27|P a g e

27


despite unemployment affecting more than two (2) million Filipinos, employers had886difficulty filling up their vacancies because of shortage of applicants with the right887

competencies and qualifications for the job. Skills mismatch in the country received888 huge attention in the 2006 National Manpower Summit. Think papers released as889discussion documents found areas of concern pertaining mismatches. These include890high turnover rates and low hiring rates affecting the customer contact industry,891oversupply of ratings among seafarers and short supply of officers, and oversupply of892inexperienced nurses. On the other hand, results of skills assessment through893multisectoral and regional consultations in 2009 contained in the document, Project894Jobsfit 2020, noted concentration of hard-to-fill occupations in high-end categories,895such as accountants and engineering professionals. (MTPDP Chapter 3:896Competitive IndustryandServicesSector,p. 16-17)897

y Need to improve labor market signaling and employment services. When898potential labor supply have no access or lack access to right information on the labor899market requirements, they may come out of learning institutions endowed with skills900that are not necessarily what are required. This highlights the relevance of a labor901

market information system and job facilitation services that can anticipate and902mobilize institutional mechanisms for responding to demand changes, and for seizing903opportunities out of these changes. Labor and Employment for Philippine904Development: SummaryofDOLE Inputstothe MTPDP)905

y Ensure market-driven education and training services. The supply side of the906labor equation should be addressed through quality education/training and effective907assessment and certification systems. Undertake and maximize capacity-building908programs with the support of foreign governments and intra-government909organizations under the framework of various bilateral and multilateral engagements.910Further enhance linkages among Filipino skilled workers and their business network,911technical experts and Filipinos involved in epistemic communities abroad under various912multi-stakeholder talent-sharing and brain-gain and skills enhancement initiatives (e.g.913Science and Technology Advisory Council, the Balik-Scientist Program and ERDT).914(MTPDPChapter8: SocialDevelopment,p. 26)915

916

OBJECTIVES AND STRATEGIES917918

Objective: Invest in our countrys top resource, our human resource, to make us919more competitive and employable (22 Point Platform and Policy Pronouncement920on Labor and Employment)921

922

STRATEGIES923

924

y Improve employment levels by:925926

1. Target the creation of additional one (1) million jobs per year. Economic927growth will be targeted to grow by 7-8% per year. This annual growth target is928expected to generate an average of some one million new jobs annually and these929jobs will be found primarily in industry and services. On the other hand, growth in930agricultural employment will be pursued through agrarian reform, infrastructure931development and agri-processing packages. Unemployment is projected at 6.8-7.2%932given 2.75% labor force growth. Bigger drops in unemployment might also be933expected if there is a huge reversal in overseas migration trends as more domestic934


27/43

28|P a g e

28


jobs are created. (MTPDP Chapter 1: In Pursuit of Inclusive Growth)935936

2. Focus interventions to increase productivity, employment, exports and937 investments in key job generating areas. To increase exports and encourage938foreign and domestic investments and thus to spur employment creation, the939government shall pursue intensive promotion, industry development and a more940focused incentives package in key areas, as indicated below: (MTPDP Chapter 3:941Competitive Industry and Services Sector, p. 27-37)942

943

o Tourism. Strategic tourism and development will be pursued in a944sustainable manner to continuously create jobs and livelihood for local945communities. Toward this end, human resources development will be a key946strategy. International and domestic tourism promotion campaign and947programs will target new markets with the support of overseas Filipinos.948(p.29)949

o Business Process Outsourcing. Services and Creative Industries, in950addition to BPO shall be promoted and enhanced, covering services such as951

accounting, education services, engineering services, franchising, interactive952media with focus on animation, gaming, health and wellness and shipcrewing953and shipmanagement. Legislation for the Magna Carta for Call Center954Workers will also be pursued. To support the industry, there is a need to955nurture the talent pool by harmonizing the educational system with the956needs of the industry, career advocacy and training. (p. 30)957

o Electronics. To show reliability of Philippine electronics and increase958exports, there is a need, among others, for the establishment of human959competencies throughout the value chain through talent development960particularly among PhDs and Masters in Sciences. (p. 31)961

o Mining962o Housing963o Agribusiness964o Logistics965o Shipbuilding. The government will continue to provide skills enhancement966 programs to ensure availability of skilled workers in the sector. (p. 34)967o Infrastructure. Infrastructure initiatives of the government will be pursued968

through public-private partnerships (PPP). (p.34)969o Other high-potential industries. These include homestyle products970

(furniture and furnishings, holiday dcor, housewares, woodcraft),971wearables, motor vehicles parts and components, garments and construction972and related materials. (p. 35-36)973

974

3. Develop green programs. Enhancement of productivity and efficiency will be975undertaken through the development and implementation of green programs and976sustainable consumption and production patterns. These programs will include PPP977initiatives and will a lso entail investments promotion. (MTPDP Chapter 3:978Competitive Industry and Services Sector, p. 36)979

980

4. Develop and implement technology development projects. To boost981innovativeness and competitiveness, technology development projects will be982developed and implemented, including the design of ICT-based English language983learning to increase the human resource uptake of call centers. (MTPDP Chapter 3:984Competitive Industry and Services Sector, p. 36)985

986


28/43

29|P a g e

29


5. Promote labor-intensive undertakings through infrastructure. An987employmentintensive scheme in infrastructure development, where applicable, will988

be also adopted by harnessing the skills and technical expertise of Filipino (Chapter989 5: Infrastructure Development)990991

6. Support the promotion of better business environment. With the overall goal992of raising the competitiveness ranking of the country, better business environment993and improved productivity and efficiency. The following strategies will be adopted:994

995

o Flexible and moderate wages policy linked to productivity improvement996(Labor and Employment for Philippine Development: Summary of DOLE997Inputs to the MTPDP) ;998

o Support to MSMEs through financing and productivity enhancement (Labor999and Employment for Philippine Development: Summary of DOLE Inputs to the1000MTPDP) ;1001

o Industry cluster development to foster linkages among MSMEs through1002 human resources development and productivity enhancement (Labor and1003Employment for Philippine Development: Summary of DOLE Inputs to the1004MTPDP);1005

o Measures to reduce pollution and waste generation through the promotion1006of green jobs and greening the industry (MTPDP Chapter 9: Conservation,1007Protection and Rehabilitation of the Environment and Natural Resources1008Towards Sustainable Development, p 34) ;1009

o Support amendments to the Barangay Micro Business Enterprises (BMBEs)1010Act so that it will support the growth and development of microenterprises1011(MTPDP Chapter 3. Competitive Industry and Services Sector, p. 22)1012

1013

o Pursue national interests for employment creation in bilateral, multilateral and1014regional negotiations to maximize opportunities offered by trade agreements.1015One approach is to assist MSMEs in becoming globally integrated, i.e.,1016mainstreamed, in the global production networks. (Chapter 3. Competitive1017Industry and Services Sector; p. 24)1018

1019

o The government shall formulate a national industrial policy that will pave the1020way for an industrial plan that will lay down a mapping of opportunities,1021planning, coordinating, and promoting the growth of forward and backward1022linkages in priority areas and high-potential growth sectors, as well as1023prepare other industries that will attract investments and promote job1024generation. (Chapter 3. Competitive Industry and Services Sector; p. 22)1025

1026

7. Improve employment levels with adequate supply of qualified and1027competent workers1028

o Education and training programs that will create supply of workers for hard to1029fill occupations will be developed Continuing professional education (CPE)1030among professionals to sustain/strengthen competencies will be promoted;1031and1032


29/43

30|P a g e

30


o Initiatives to reverse brain drain will be undertaken. (Results of the1033consultations for the National Summit on Labor and Employment)1034

8. Improve employment levels with job-rich trade and investment policies1035o Employment generation mainstreaming in agri-business trade and investment1036

policies will be pursued;1037

o Investor friendly policies to encourage investor confidence will be adopted;1038o An enabling environment that will encourage the return of overseas Filipinos1039

and their productive investments will be pursued;1040

o Capital and knowledge transfer initiatives will be undertaken to harness1041positive development outcomes of migration and create domestic1042employment opportunities; and1043

o Employment willbe mainstreamed as core objective offree trade agreements1044(Results of the consultations for the National Summit on Labor and1045 Employment)1046

9. Improve employment levels by promoting entrepreneurship through education1047and training and community based entrepreneurial activities (Results o f the1048consultations for the National Summit on Labor and Employment)1049

10.Promote investments and entrepreneurship among overseas Filipinos (OFs)10501051

o Pursue a more aggressive information and marketing campaign to1052tap overseas Filipinos (OFs) as sources of capital. Toward this end, DTI and1053DOLE will review and strengthen existing programs and consider ways by1054which to maximize the brain gain derived by OFs from their foreign1055deployment (Chapter 3: Competitive Industry and Services Sector, p. 38)1056

1057

o Create linkages among Filipino skilled workers and their business1058 networks, technical experts and Filipinos abroad to promote multi-stakeholder1059talent-sharing and brain-gain and skills enhancement initiatives. (Chapter 3:1060Competitive Industryand Services Sector, p. 27)1061

1062

o Assist OFWs in achieving financial stability through training,1063investment and savings programs. (22-Point Platform and Policy1064Pronouncementson LaborandEmployment). LGUsneedtowork with others1065indatabanking, skills training, andpromoting the economicundertakingsof1066their constituency OFWs. National agencies should concentrate on the1067training oftrainers. (Trade Union Congressofthe Philippines, Labor Position1068onthe NationalSummitonLaborandEmployment)1069

1070

o Adopt a global trading master plan with the aim of establishing1071worldwide trading posts that rely on the labor, knowledge and1072

entrepreneurial spirit of Overseas Filipino Workers (OFWs) will be adopted1073(22-Point Platformand Policy Pronouncement on Labor and Employment)1074

1075

o Facilitate the re-integration of returning OFWs by favorable terms of1076investment, tax incentives, access to government financial institutions and1077other benefits that are offered to foreign investors. (22-Point Platform and1078


30/43

31|P a g e

31


Policy Pronouncement on Labor and Employment). Consider OFW-oriented1079investment funds and OFW-oriented lending operations. (Trade Union1080

Congress ofthe Philippines, LaborPositiononthe NationalSummiton Labor1081andEmployment)1082

1083

11. Improve financial sector policies to encourage resource flows and allocations1084toward long-term productive investment by sustainable enterprises, to meet the need1085for investment, innovation, trade and consumption, and to allow for the channeling of1086higher savings toward higher capital formation. (Labor and Employment for Philippine1087Development: Summary of DOLE Inputs to the MTPDP)1088

1089

y Improve access to employment opportunities by:10901. Adopt reforms in employment facilitation. Reforms on employment facilitation1091

shall be pursued to support a policy environment that will increase labor demand1092and improve labor supply using pro-employment labor market policies that foster1093

flexibility, efficiency and equity supported by a strong system of public employment1094service. Programs that will be covered in the reforms include the creation of an1095Integrated Human Resources Data Warehouse and a National Skills1096Registry System, advocacy for necessary allocation to subsideize low-income LGUs1097for the institutionalization ofPublic Employment Services Offices (PESOs), and1098the Expansion of the Walk-In Examination (WES) for Maritime1099Professionals to cater to the needs of the growing needs of maritime professionals1100for licensure. (Labor and EmploymentPolicy Reforms and Program Implementation1101for the First 100 Days of President Benigno S. Aquino III Administration). Career1102advocacy, coaching and counseling will also be enhanced to improve the1103employability of graduates and workers. (Results of the consultations for the National1104Summit on Labor and Employment)1105

1106

2. Address the labor-mismatch problem by promoting better coordination between1107employers, academia and government through strengthening both public (e.g. Public1108 Employment Service Offices PESO) and private sector labor market information and1109exchange institutions, especially at the local levels. (22-Point Platform and Policy1110Pronouncements on Labor and Employment). Toward this end, DOLE and TESDA1111should engage with major investment-incentive granting agencies (BOI, PEZA) in1112validating projections of skills in demand in economic zones and elsewhere in1113preparing programs to meet skills requirements. (Trade Union Congress of the1114Philippines, Labor Position on the National Summit on Labor and Employment, p. 1)1115

1116

3. Enhance human capital through education and training. Qualitative1117attributes such as education, skills, health cognitive abilities, set the parameters for1118individuals ability to access productive employment as well as the scope for1119technological advancement, increased labor productivity and returns to labor at the1120aggregate level. A focus on inclusiveness from the human resource base perspective1121requires a special focus on the working poor and unemployed which comprise a1122

significant percent of the labor force. (MTPDP Chapter 2: Macroeconomic Policy, p.11239).Based on the DOLE inputs to the MTPDP, adopted texts in the MTPDP and the1124results of the consultations for the National Summit on Labor and Employment, the1125following strategies will be adopted:1126

1127


31/43

32|P a g e

32


a. Diffusion of human resource policies within individual firms to the larger1128business environment to encourage wide adoption toward larger benefits for1129

the macroeconomy or society.1130

b. Incentives for coupled capital and human resources investments to1131encourage enterprises to invest in both capital and human resources and put1132in place the governance and human resources required for these investments1133to reach their full potential are available1134

c. Industry human resource advisory councils with a broad and open-ended1135mandate to allow for appropriateness in response will be established. For1136instance, the councils could tackle current regulatory and management1137systems in the industry deemed effective in managing the risks associated1138with the use of contract labor1139

o Market-driven and quality education and training, effective skills assessment1140and certification systems and career advocacy especially in areas with high1141potential for growth and job generation: business process outsourcing (BPO),1142tourism, agribusiness and forestry-based industries, logistics, shipbuilding,1143housing, electronics, infrastructure and high potential areas1144

o Capacity-building programs under the framework of various bilateral and1145multilateral engagements1146

o Review and strengthening of programs in skills bridging, on-the-job1147training/apprenticeship/learnership to enhance human resource development1148programs1149

o Expanded Ladderized Education Program to cover all degrees1150o Quality Management Systems for competency-based training1151o Training reforms oriented to the needs of youth1152o Entry into mutual recognition agreements to provide equal access to1153

professionals who opt to work abroad1154

o Enhanced financial literacy in the countryside and OF-rich areas abroad1155through public-private partnerships.1156

o Better mid-level skills governance through by strengthening TESDA in the1157areas of development planning, resource allocation, standard setting and1158quality assurance and by encouraging LGUs and industry to directly1159participate in the delivery of technical-vocational education and training and1160skills development programs.1161

o Implementation of the Philippine National Qualification Framework (PNQF)to1162enhance the mobility of students between higher education; ladderization,1163the expanded tertiary education, equivalency and accreditation program and1164

related modalities shall be adopted as specific approaches.1165

o Industry-academe linkage and dissemination of labor market information,1166delivery of career guidance and counseling services, improving education1167and training with particular1168


32/43

33|P a g e

33


o Emphasis on generic competencies including trainability, work ethics, ICT1169literacy, critical thinking and problem-solving skills and good communication1170

skills to produce globally competent and flexible workforce with positive work1171 values responding to highly demanded critical skills, especially in the growth1172corridors, and improving levels of competencies of trainers and assessors in1173manpower development.1174

1175

y Invest in the formal and regular skills training and upgrading of services1176worker and utilize returning OFWs to conduct training. (22-PointPlatformand1177PolicyPronouncementson LaborandEmployment.)TESDA should concentrate funding1178in institutions with sterling records (in) training and placement. and OWWA should1179collaborate in expanding scholarships for upgrading the education/skills of OFWs and1180their families. (Trade Union Congress of the Philippines, Labor Position on the National1181SummitonLaborandEmployment,p. 6)1182

1183

PILLAR 3: SOCIAL PROTECTION1184

1185

Outcome:Access to social protection mechanisms for all ensured and safe work promoted1186

1187

BACKGROUND1188

1189

The Philippine Development Plan 2011-2016 on Social Development seeks to improve the1190

quality of life of all Filipinos by ensuring equitable access to adequate and quality social1191

services and assets. Central to achieving this goal is the implementation of social protection1192

interventions to reduce vulnerabilities of individuals and households against risks (e.g. loss1193

of income, unemployment, sickness among others) particularly during crisis brought about1194

by economic downturns or natural disasters which can push them down to poverty. Social1195protection policies and strategies are guided by th